Question

What do you mean by Money measurement concept in accounting?

Answer 1

Answer:

The money measurement concept (also called monetary measurement concept) underlines the fact that in accounting and economics generally, every recorded event or transaction is measured in terms of money, the local currency monetary unit of measure

Answer 2

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Money measurement concept

Only thosethose transactions and events are recorded in accounting which are capable of being expressed in terms of money. An event even though it may be very important for the business will not be recorded in the books of business and its effect can be measured in the terms of money with the fair degree of accuracy.

For example,accounting does not record a quarrel between production manager and sales manager it does not report that a strike is fitting and it does not reveal that a competitor has placed a better product in the market. These facts of happenings cannot be expressed in a money terms and terms are not recorded in the books.